Chinese pharma companies developing low-cost alternatives to popular diabetes medication
Chinese pharmaceutical companies are developing at least 15 generic versions of glucagon-like peptide-1 (GLP-1) agonist drugs, similar to Novo Nordisk's Ozempic. It is an injection used for weight loss and Type 2 diabetes. Ozempic was approved for sale in China in 2021 and its sales nearly doubled over the past few years. The latest move from Chinese drug makers could potentially disrupt the market for Novo Nordisk, which already sells its drug in China significantly cheaper than in the US.
Patent expiry and legal battles
Novo Nordisk holds an exclusive patent on Ozempic's active ingredient, semaglutide, in China until 2026. However, a legal battle over a patent invalidation ruling could potentially expedite the entry of generic versions into the market. Hangzhou Jiuyuan Gene Engineering is among the leading contenders, with their version of semaglutide reportedly having "similar clinical efficacy and safety" to Ozempic.
Hangzhou Jiuyuan's anticipated entry into the market
Hangzhou Jiuyuan Gene Engineering applied for sales approval of their semaglutide version in April this year. The company expects to receive approval by the end of 2025. However, they do not plan to launch their drug until either the semaglutide patent expires in 2026, or a court rejects Novo's appeal of an invalidation ruling.
Novo Nordisk's response to emerging competition
In light of the potential challenges to its market dominance, Novo Nordisk has expressed a welcoming stance toward competition. A spokesperson for the company told Reuters that they "welcome healthy competition." However, if these challenges lead to further price reductions for these already inexpensive drugs, it could potentially impact Novo's market position. The new competitors could further decrease sales margins for the brand-name drug.
